Olact Cafta Presentation


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Olact Cafta Presentation

  1. 1. CAFT A -DR: Benefits for U.S. Business June 4 th FedEx Webinar Mark Siegelman U.S. Department of Commerce Tel: 202-482-0704 Email: Mark_Siegelman@ita.doc.gov
  2. 2. <ul><li>El Salvador - March 1, 2006 </li></ul><ul><li>Honduras - April 1, 2006 </li></ul><ul><li>Nicaragua - April 1, 2006 </li></ul><ul><li>Guatemala - July 1, 2006 </li></ul><ul><li>Dominican Republic - March 1, 2007 </li></ul><ul><li>Costa Rica – Not yet ratified CAFTA-DR; public referendum in September 2007 </li></ul>CAFTA-DR STATUS: ENTRY INTO FORCE
  3. 3. <ul><li>Promotes business with a significant market for U.S. Exports. </li></ul><ul><li>Levels the Playing Field. </li></ul><ul><li>- Reciprocal commitments; not one-way like CBI. </li></ul><ul><li>- Counters Central American preferences to their </li></ul><ul><li>other FTA partners. </li></ul><ul><li>Supports democracy, economic reform, and regional integration in our neighboring countries. </li></ul>WHY CAFTA-DR?
  4. 4. <ul><li>About 80 percent of U.S. exports of consumer and industrial goods became duty-free immediately upon implementation. </li></ul><ul><li>Tariffs on remaining consumer and industrial products phased out within 5 or 10 years. </li></ul><ul><li>Key U.S. export sectors that benefit from immediate duty elimination include information technology products, construction and agricultural equipment, paper products, pharmaceuticals, and medical and scientific equipment. </li></ul>TARIFF ELIMINATION
  5. 5. <ul><li>More than half of U.S. farm exports became duty-free immediately, including cotton, wheat, soybeans, key fruits and vegetables, and processed food products. </li></ul><ul><li>Tariffs on most remaining U.S. farm products will be phased out within 15 years. </li></ul><ul><li>Nearly all textile and apparel goods that meet the agreement’s rules of origin are now traded duty-free and quota-free, promoting opportunities for U.S. and regional fiber, yarn, fabric, and apparel manufacturing. </li></ul>
  6. 6. <ul><li>Provides substantial market access across the entire services regime (e.g. telecom, engineering, transportation, financial services). </li></ul><ul><li>Provides higher standards for protecting intellectual property rights (IPR) , such as copyrights, patents, and trademarks, and enhances means for enforcing those rights. </li></ul><ul><li>Requires the use of fair and transparent government procurement procedures, including advance notice of purchases and timely and effective bid review procedures </li></ul>CAFTA-DR: More Than Just Tariffs
  7. 7. <ul><li>Establishes a more secure and predictable legal framework for U.S. investors in the region. </li></ul><ul><li>Requires transparency and efficiency in administering customs procedures, facilitating entry of goods into these countries. </li></ul><ul><li>Loosens restrictive “dealer protection” regimes that have locked U.S. firms into exclusive or inefficient distributor arrangements </li></ul><ul><li>Provides strong anti-corruption provisions against bribery in matters related to trade and investment. </li></ul>
  8. 8. <ul><li>Provides protection for labor and the environment ; requires effective enforcement of laws and establishes cooperative programs to build local enforcement capacity. </li></ul><ul><li>Creates strong dispute settlement procedures. Emphasis is on promoting compliance through consultation, but enforcement mechanism includes monetary penalties to enforce obligations of the agreement. </li></ul>